DoD's F-35 Simulator Facility Contract Exceeds $36M, Awarded to Harper Construction

Contract Overview

Contract Amount: $36,801,909 ($36.8M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-30

End Date: 2021-02-26

Contract Duration: 911 days

Daily Burn Rate: $40.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF X002 F-35 SIMULATOR FACILITY

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92145

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $36.8 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: IGF::OT::IGF X002 F-35 SIMULATOR FACILITY Key points: 1. Contract value of $36.8M for F-35 simulator facility construction. 2. Awarded via full and open competition, indicating market availability. 3. Potential risk in fixed-price contract if scope changes significantly. 4. Construction sector spending, with specific application to defense readiness.

Value Assessment

Rating: good

The contract value of $36.8M appears reasonable for a specialized facility like a simulator. Benchmarking against similar large-scale construction projects for defense infrastructure would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The firm-fixed-price structure aims to control costs, but potential for change orders exists.

Taxpayer Impact: The firm-fixed-price contract aims to ensure cost certainty for taxpayers, but vigilance is needed to manage any scope creep or unforeseen issues.

Public Impact

Enhances pilot training capabilities for the F-35 program, crucial for national security. Supports the readiness and effectiveness of the U.S. Air Force and Navy. Represents significant federal investment in defense infrastructure and technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if scope changes.
  • Reliance on a single contractor for the duration of the project.

Positive Signals

  • Awarded through full and open competition.
  • Firm-fixed-price contract provides cost certainty.
  • Supports critical defense training infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting defense infrastructure. Benchmarks for similar large-scale military construction projects would be relevant for cost comparison.

Small Business Impact

The contract was awarded to Harper Construction Company, Inc., and there is no indication of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities were pursued.

Oversight & Accountability

The Department of the Navy awarded this contract, and oversight would typically involve contract management and inspection to ensure compliance with terms and quality standards.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for scope creep impacting budget.
  • Dependence on contractor performance for timely delivery.
  • Risk of unforeseen site conditions affecting cost or schedule.
  • Cybersecurity risks associated with advanced simulator technology.

Tags

commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.8 million to HARPER CONSTRUCTION COMPANY, INC.. IGF::OT::IGF X002 F-35 SIMULATOR FACILITY

Who is the contractor on this award?

The obligated recipient is HARPER CONSTRUCTION COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $36.8 million.

What is the period of performance?

Start: 2018-08-30. End: 2021-02-26.

What is the projected return on investment for this simulator facility in terms of improved pilot proficiency and reduced training costs?

The return on investment is primarily measured by enhanced pilot training capabilities, leading to improved mission effectiveness and potentially reduced operational training costs over the lifecycle of the F-35 program. Quantifying this precisely requires detailed analysis of training hours, flight simulation effectiveness compared to live flight, and long-term operational savings.

What are the key performance indicators (KPIs) used to measure the success of this construction project and the functionality of the simulator facility?

Key performance indicators would likely include adherence to schedule, budget compliance, quality of construction, and successful integration of the simulator systems. Post-completion, KPIs would focus on simulator uptime, training throughput, user satisfaction among pilots and instructors, and the facility's contribution to overall F-35 program readiness metrics.

How does the cost of this simulator facility compare to similar facilities built for other advanced aircraft programs?

A direct comparison requires detailed cost breakdowns and consideration of facility size, technological complexity, and location-specific construction costs. However, the $36.8M value for a specialized defense simulator facility suggests a significant investment. Benchmarking against comparable projects, adjusted for inflation and scope, is essential for a thorough value assessment.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247316R1868

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2241 KETTNER BLVD STE 300, SAN DIEGO, CA, 92101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,801,909

Exercised Options: $36,801,909

Current Obligation: $36,801,909

Subaward Activity

Number of Subawards: 889

Total Subaward Amount: $825,859,166

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247318D5853

IDV Type: IDC

Timeline

Start Date: 2018-08-30

Current End Date: 2021-02-26

Potential End Date: 2021-02-26 00:00:00

Last Modified: 2021-04-13

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